BDA Advises Hanwha Life on Acquisition of Majority Stake in Velocity Clearing

BDA Partners Ltd PR.com

Milestone transaction will mark the first time a Korean insurance company has acquired a controlling interest in a foreign brokerage firm.

New York, NY November 21, 2024 --(PR.com)-- BDA Partners is pleased to announce that its client, Hanwha Life, South Korea’s first life insurance company, has agreed to acquire a 75% stake in the parent of Velocity Clearing, a US-based global financial services firm. The Velocity Clearing management team will retain the remaining minority stake. With this acquisition, Hanwha Life will secure a foothold in the US financial sector, expanding access to excellent opportunities, to maximize returns on investment.

Hanwha Life is a leading Korean life insurance company, at the forefront of developing the insurance industry, driving Korean economic growth for 78 years. As part of that growth, the financial group has expanded into overseas markets, including Vietnam and Indonesia, with its latest market being the US. Hanwha Life is part of the Hanwha Group.

Velocity Clearing offers a unique combination of people, processes and technology that allow clients to trade, borrow and invest with confidence. Velocity will join Hanwha Life following a record year of growth. Since 2023, Velocity Clearing grew its assets under custody by 300%, more than doubled its correspondent clearing business, increased its US and offshore technology staff by 50%, and expanded into Latin American and Asian markets. The acquisition of Velocity by Hanwha will allow the New York brokerage and global financial technologies company to continue its expansion into the Asian market.

Hanwha Life is committed to retaining Velocity Clearing’s existing staff, and promoting collaboration to foster future synergies. The extensive professional experience and expertise of Velocity’s employees will be a valuable asset to Hanwha as it continues to grow.

BDA Partners acted as exclusive financial advisor to Hanwha.

Euan Rellie, Managing Partner, BDA, said, “BDA has a long record of helping leading Asian companies expand globally. We’re excited about our work for Hanwha, a blue-chip chaebol, with expertise and reach across financial markets. This transaction marks a milestone, not only for Hanwha, but for the entire Korean financial market. Korean financial institutions have long sought to gain exposure to the US banking sector through acquisition, a goal that has remained out of reach – until now.”

Zac Chartier, Director, BDA, added, “Hanwha has taken a critical step, entering the broker-dealer sector, a core backbone of the US banking system. This strategic move enhances Hanwha’s global presence and paves the way for future developments.”

The deal team was led by Euan Rellie, Howard Lee, Zac Chartier, Sang Hyuk Yoon, Colton Bucey, and Jun Maeng.

About Velocity Clearing
Velocity Clearing is a technology-driven, self-clearing broker-dealer, providing execution services, clearing, and custody along with access to stock locate services, securities lending, competitive financing, and a firm-wide focus on world-class customer service. Velocity Clearing supports retail traders and institutional clients including brokers/dealers, hedge funds, family offices, and proprietary trading firms in the US and across the globe. With a growing team of professionals in multiple locations, Velocity has the right combination of resources and people to provide seamless and reliable service to clients. Velocity Clearing is registered with the SEC, and is a member of FINRA and SIPC. www.velocityclearingllc.com

About Hanwha Life
Established in 1946, Hanwha Life is a leading South Korean life insurance company, the first and oldest in the nation. For 78 years, Hanwha Life has played a critical role in developing the industry and expanding the country’s economic growth. In 2023, Hanwha Life reported total assets of US$114bn, demonstrating its sound structure and firm commitment to adding innovative products and services that meet a wide range of customer needs. www.hanwhalife.com

About BDA Partners
BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with over 25 years of experience advising on cross-border M&A, capital raising and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services, Sustainability and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.

BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese Government-owned bank with US$150bn of assets.

US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc, a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorized and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors. www.bdapartners.com